Business Standard |
New Delhi
April 18, 2011
Last Updated at 00:54 IST
I agree with Jaimini Bhagwati that a simplified tax code could bring all-round benefits to the economy and that India is viewed as having a complicated and unpredictable tax framework (“Keep it less taxing, please,” April 15). It is difficult to predict whether the Direct Taxes Code, which is to replace the Income-tax Act, will be simple, easy to understand or potentially litigation-free. But one thing is clear: all the main proposals contained in the original Direct Taxes Code Bill have been withdrawn by the government. What remains is undesirable. There is only one proposed reduction, of corporate tax from 30 per cent to 25 per cent, which can be done through the Finance Bill that is introduced every year. In my opinion, the Direct Taxes Code is not a step to simplify the tax laws, it will create a bigger mess.
S C Aggarwal, New Delhi
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